Citi sees shale gas from US eluding Asia

Asia’s going to have to wait a little longer for the flood of U.S. shale gas to reach its shores.

A global glut of liquefied natural gas has cut price differences between regions worldwide, leading traders to ship cargoes for shorter distances to save on freight costs, Citibank analysts  said in a report. That means U.S. LNG may stay in the Western Hemisphere for the near future, even with last month’s Panama Canal expansion that can cut two weeks off journeys from America to Asia.

Source: Bloomberg